The current draft of MiCA does not include the provision to ban cryptocurrencies like Bitcoin operating on the proof-of-work protocol
The EU’s much-debated MiCA rule is moving forward, but without the PoW prohibition clauses. The EU’s new MiCA legislation have sparked a lot of debate, particularly the wording aimed at prohibiting proof-of-work cryptocurrencies like Bitcoin. The statute is now being implemented, but without these provisions.
Due to energy consumption concerns, the European Union’s (EU) planned Markets in Crypto Assets (MiCA) regulatory package has chosen not to pursue the controversial section aimed at restricting the usage of proof-of-work cryptocurrencies. Before going on to the trialogue talks between the parliament, the council, and the commission, EU legislators were seeking to find an agreement on how to properly regulate the crypto area. The present draft of MiCA does not include a clause prohibiting the use of proof-of-work cryptocurrencies like Bitcoin.
On Friday, Stefan Berger, the German politician in charge of the MiCA legislation, tweeted that his proposed mission, which does not include a POW prohibition, is unchallenged and that the EU has showed “creative strength.” According to Berger, the deadline to challenge the mandate passed at midnight on Thursday, and the MiCA trilogue will begin next week.
Other topics explored by the parliament include non-fungible tokens (NFTs) and decentralized finance (DeFi). The debate is whether they should be included in the MiCA package, and which EU institutions should be in charge of cryptospace oversight.
In a 30–23 vote on March 14, the European Parliament rejected explicit wording to prohibit proof-of-work cryptocurrencies. Those who lost required a tenth of a vote of lawmakers to oppose Mica’s fast-track process through trilogs, which would have reinstated the proof-of-work restriction. According to August 2021 statistics from Cambridge University, Europe accounts for roughly 12-14 percent of overall BTC mining hash power, as previously reported by crypto potatoes. Because Ireland and Germany make up the majority of the amount, global hash rates are unlikely to be affected.
